18.03.2013 - CITI: Watch these 5 currencies to see how the market is reacting to Cyprus

What will be the market impact from the Cyprus bailout? Citi FX guru Steven Englander explains what to watch in the currency space. The developments in Cyprus will lead to EUR selling and USD, CHF, GBP, NOK and SEK buying (in that order).
The issue is whether to believe that the Cyprus levy on depositors is one-off, but depositors and investors elsewhere could easily see this as another in a string of ‘one-offs’ and react badly. The risk-return to depositors in countries with weak banking systems may not favor taking the risk that Cypriot banking system was so unique that such a levy would never be considered elsewhere. The levy on deposits ostensibly covered by deposit insurance may also undermine confidence in weak banks...............................................Full Article: Source